Unpopular Opinion
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Saying that statistical analysis is derivative work is a massive stretch. Generative AI is just a way of representing statistical data. It’s not particularly informative or useful (it may be subject to random noise to create something new, for example), but calling it a derivative work in the same way that fan-fiction is derivative is disingenuous at best.
Wouldn't that argument be like saying an image I drew of a copyrighted character is just an arrangement of pixels based on existing data? The fact remains that, if I tell an AI to generate an image of a copyrighted character, then it'll produce something without the permission of the original artist.
I suppose then the problem becomes, who do you hold responsible for the copyright violation (if you pursue that course of action)? Do you go after the guy who told the AI to do it, or do the people who trained the AI and published it? Possibly both? On one hand, suing the AI AL company would be like suing Adobe because they don't stop people from drawing copyrighted materials in their software (yet). On the other hand, they did create this software that basically acts in the place of an artist that draws whatever you want for commission. If that artist was drawing copyrighted characters for money, you could make the case that the AI company is doing the same - manufacturing copyrighted character images by feeding the AI images of the character and allowing people to generate images of it while collecting money for their services.
All this to say, copyright is stupid.
Tracing a picture to make an outline in pencil is a derivative work. There's plenty of court cases ruling on this.
A convolutional neural network applies a kernel over the input layer to (for example) detect edges and output to the next layer a digital equivalent of a tracing.
Why would the CNN not be a derivative work if tracing by hand is?
Tracing is fine if you use it to learn how to draw. It’s not fine if it ends up in the finished product. Determining if it ends up in the finished product with AI either means finding the exact pattern in the AI’s output (which you will not), or clearly understanding how AI use their training data (which we do not)